Structural changes to consumer habits opens opportunities for both strong and nascent brands.
The opportunities that we foresee post-pandemic are captured in our three long-term mega-trends analytical framework, which are
- Resource Scarcity,
- Demographic Change, and
- Future of Technology.
We are able to analyse every company we research in terms of exposure to those mega-trends and the themes within them. As a result, we are able to assess, at the portfolio aggregate level, the extent of our exposures to the various themes within the mega-trends shown in the image below. This analytical framework enables us to
- assess our thematic exposures more accurately,
- manage risk exposures and portfolio diversification more efficiently, and
- direct our research efforts where we see attractive long-term structural growth opportunities.
We list below the medium-term opportunities that we foresee in a post pandemic world, which our sector specialists will expand on.
- increased infrastructure spend to boost the economy, notably railway and 5G infrastructure;
- increased spend in healthcare infrastructure to both make the public healthcare sector more prepared for future pandemics, and to increase investments in homecare and telemedicine;
- increased incentives in sustainability, whether it is social sustainability or greener solutions in transport, energy generation, infrastructure and construction in particular;
- increased investment in cloud computing and cybersecurity given the acceleration in the pace of migration to digital economies;
- increased investment in robotics and automation as corporates tackle the need to make their supply chains more robust; and
- improvements in food hygiene and general hygiene (both household and professional premises).
In our view, all of these opportunities present higher structural growth potential overall, and can be attractive for long term investors.
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